WIZZIT
Encyclopedia
WIZZIT Payments Ltd is a provider of basic banking services for the unbanked and underbanked
(people or enterprises that have no or only limited access to banking services) in South Africa. Its services are based on the use of mobile phones for accessing bank accounts and conducting transactions, in addition to a Maestro debit card
that is issued to all customers upon registration. Wizzit is a branchless banking
business, meaning that its services are designed so that customers can generally conduct transactions without the need to visit bank branches
.
While Wizzit does not operate any branches on its own, it has partnered with the Absa Group
and the South African Post Office that act as banking agent
s and allow Wizzit's customers to deposit funds at any Absa or Post Office branch. Similarly, Wizzit does not have an automated teller machine (ATM)
network but its customers can pay for purchases and withdraw funds using their debit card at any point of sale (POS)
or ATM accepting Maestro cards. Wizzit has also partnered with Dunns, a fashion retailer focusing on lower to middle-income customer segments that acts as an agent for opening accounts.
The company maintains a policy of only recruiting unemployed people, which it has integrated into its promotion strategy: Because marketing costs represent one of the biggest financial challenges to its business, Wizzit does not use mass media advertisements but relies instead on so-called WIZZkids—previously unemployed individuals that the company certifies to become sales agents. WIZZkids educate potential customers about Wizzit, perform account opening and earn a commission for each new customer. Besides the commission on sales, WIZZkids receive annuity income based on the transaction level of account holders, which motivates them to train customers to use their accounts. The WIZZkids are typically young, low-income individuals living in the communities from which they recruit their customers .
Launched in 2004, Wizzit is formally a division of the South African Bank of Athens but its brand is owned and its operations are run by a group of independent entrepreneur
s. Wizzit had an estimated 250,000 customers in South Africa at the end of 2008 and has launched pilot projects in Zambia
and Romania
, where it intends to expand. It had earlier reported that it expected to expand into other African countries as well and that it had been approached by potential partners from Kenya, Botswana, Namibia, Zambia, and Malawi.
Wizzit aims at partnering with either existing banks or microfinance institutions (MFIs) in the countries it intends to expand to, a strategy it has been testing with Beehive, a South African MFI. Wizzit has also been planning to acquire merchants as agents in South Africa's rural areas, where the majority of its potential customers reside and where there is only an underdeveloped payments infrastructure available, such as ATMs and POS devices. If successful, merchants will offer customers the ability to deposit money to and withdraw money from their Wizzit bank accounts, as well as to pay for purchases by using their mobile phones.
Access to finance
Access to finance refers to the possibility that individuals or enterprises can access financial services, including credit, deposit, payment, insurance, and other risk management services...
(people or enterprises that have no or only limited access to banking services) in South Africa. Its services are based on the use of mobile phones for accessing bank accounts and conducting transactions, in addition to a Maestro debit card
Maestro (debit card)
Maestro is a multi-national debit card service owned by MasterCard, and was founded in 1990. Maestro cards are obtained from associate banks and can be linked to the card holder's current account, or they can be prepaid cards...
that is issued to all customers upon registration. Wizzit is a branchless banking
Branchless banking
Branchless banking is a distribution channel strategy used for delivering financial services without relying on bank branches. While the strategy may complement an existing bank branch network for giving customers a broader range of channels through which they can access financial services,...
business, meaning that its services are designed so that customers can generally conduct transactions without the need to visit bank branches
Branch (banking)
A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers....
.
While Wizzit does not operate any branches on its own, it has partnered with the Absa Group
Absa Group Limited
The Absa Group Limited is the largest consumer bank in South Africa.- Overview :Absa is based in Johannesburg and listed on the JSE Limited and is one of South Africa's largest financial institutions...
and the South African Post Office that act as banking agent
Banking agent
A banking agent is a retail or postal outlet contracted by a financial institution or a mobile network operator to process clients’ transactions...
s and allow Wizzit's customers to deposit funds at any Absa or Post Office branch. Similarly, Wizzit does not have an automated teller machine (ATM)
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
network but its customers can pay for purchases and withdraw funds using their debit card at any point of sale (POS)
Point of sale
Point of sale or checkout is the location where a transaction occurs...
or ATM accepting Maestro cards. Wizzit has also partnered with Dunns, a fashion retailer focusing on lower to middle-income customer segments that acts as an agent for opening accounts.
The company maintains a policy of only recruiting unemployed people, which it has integrated into its promotion strategy: Because marketing costs represent one of the biggest financial challenges to its business, Wizzit does not use mass media advertisements but relies instead on so-called WIZZkids—previously unemployed individuals that the company certifies to become sales agents. WIZZkids educate potential customers about Wizzit, perform account opening and earn a commission for each new customer. Besides the commission on sales, WIZZkids receive annuity income based on the transaction level of account holders, which motivates them to train customers to use their accounts. The WIZZkids are typically young, low-income individuals living in the communities from which they recruit their customers .
Launched in 2004, Wizzit is formally a division of the South African Bank of Athens but its brand is owned and its operations are run by a group of independent entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
s. Wizzit had an estimated 250,000 customers in South Africa at the end of 2008 and has launched pilot projects in Zambia
Zambia
Zambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....
and Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
, where it intends to expand. It had earlier reported that it expected to expand into other African countries as well and that it had been approached by potential partners from Kenya, Botswana, Namibia, Zambia, and Malawi.
Wizzit aims at partnering with either existing banks or microfinance institutions (MFIs) in the countries it intends to expand to, a strategy it has been testing with Beehive, a South African MFI. Wizzit has also been planning to acquire merchants as agents in South Africa's rural areas, where the majority of its potential customers reside and where there is only an underdeveloped payments infrastructure available, such as ATMs and POS devices. If successful, merchants will offer customers the ability to deposit money to and withdraw money from their Wizzit bank accounts, as well as to pay for purchases by using their mobile phones.
External links
- www.wizzit.co.za
- WIZZIT: Banking the Unbanked in South Africa (YouTube video)
- WIZZIT on CNN (YouTube video)